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Which of the following chronologies is correct?
Interest Expense
Expenses that a company faces for using borrowed capital, usually shown on the profit and loss statement.
Owner's Equity
The residual interest in the assets of an entity that remains after deducting its liabilities. It represents the ownership interest of the shareholders in a company.
Total Liabilities
The sum of all financial obligations or debts a company owes, including loans, accounts payable, mortgages, and any other monies due to external parties.
Total Assets
The sum of all assets owned by an entity, including both current and noncurrent assets.
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